Bross Trucking Inc. v. Commissioner – Determining the value of personal goodwill

Description

Abstract: Personal goodwill in business valuation is alive and well, as a 2014 U.S. Tax Court case demonstrates. The court concluded that virtually all goodwill associated with a trucking company belonged to its owner. As a result, he didn’t receive goodwill from the corporation or make a gift of those assets to his three sons, who formed a new company. This article discusses the differences between business and personal goodwill. Bross Trucking Inc. v. Commissioner, T.C. Memo 2014-107 (6/5/14)